European shares stabilize after selling due to inflation fears

European shares rose about one percent on Tuesday, as investors bought shares that fell sharply after the intense selling in the previous session caused by fears of a large US interest rate hike and a possible economic recession.

The pan-European Stoxx 600 index was up 0.9 percent by 0705 GMT, after falling 2.4 percent to a three-month low on Monday.

The banking, travel, entertainment and technology sectors rose between 1.1 percent and 1.8 percent.

The main US stock index fell on Monday as fears grew that an expected interest rate hike would push the economy into a recession.

Shares of German software company SAP rose 1.5 percent after the US company Oracle announced strong quarterly earnings.

French IT firm Atos fell 5.8% after it announced that its chief executive, who took office in January, would resign after weeks of rows with the board over the company’s strategy.